The Abu Dhabi Investment Authority (ADIA), one of the world's largest sovereign wealth funds, has restructured its external equities department, separating indexed funds from active funds as part of a more focused strategy, it said on Sunday.
Sheikh Mohammed bin Khalifa Al Nahyan, son of the President of the United Arab Emirates and ruler of Abu Dhabi, Sheikh Khalifa, has been appointed to head the newly-created Indexed Funds department. The other, External Equities Department will be headed by Obeid al-Suwaidi, who was previously director of external funds for the Far East.
Earlier, ADIA had four departments, all external funds equities on a geographical basis - Europe, North America, Far East and Emerging Markets. These four departments allocated funds to external managers, some of which were actively managed, and some indexed.
Now, the four departments are being merged into one for the active funds while a new Indexed Funds Department is also being set up.
"The creation of our new indexed-funds and active departments will streamline how we manage our relationships in the equities space with external fund managers," an ADIA spokesman told Reuters. "But it also forms part of our broader efforts to continually enhance the way we share and pool our knowledge and resources across the organisation," he said.
ADIA allocates over 60 percent of its portfolio to externally-managed indexed funds. In 2007, ADIA restructured its internal equities department.
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